Energy Energy comes in many forms including electricity

Energy • Energy comes in many forms including electricity, gas, oil and steam and is a resource used by organisations worldwide • Energy is becoming increasingly more expensive as the Earth’s non-renewable resources are used up • Reducing an organisation’s energy consumption will not only reduce its costs, but will also reduce its carbon footprint and help protect the natural environment • Reducing energy consumption also reduces a company’s reliance on others to provide the energy they need to operate, hence reducing the risk to the organisation • Energy Management is therefore quickly becoming one of the most fundamental areas of focus across all business sectors • The international energy management standard, ISO 50001 was issued on 15 June 2011 and can aid organisations to reduce its energy consumption.

Market Drivers and Demands Organisations are facing: • Depleting energy sources • Reliance on others to provide energy • Price increases • Legislation and regulation of Carbon Emissions • Pressure to reduce costs • Stakeholder concerns for their ‘Green’ claims.

What is an Energy Management System? By definition (3. 9) it is a set of interrelated or interacting elements to establish an energy policy and energy objectives, and processes and procedures to achieve those objectives. Source: ISO 50001

Purpose • The purpose of an Energy Management System is to enable organisations to establish the systems and processes necessary to improve energy performance, including energy efficiency, use and consumption • Implementation of such a system is intended to lead to reductions in greenhouse gas emissions and other related environmental impacts and energy cost through systematic management of energy.

Benefits of an En. MS Having such a system will enable an organisation to: • demonstrate commitment to energy efficiency • improve energy use performance in a systematic way • ensure energy management conforms with stated policy • demonstrate its commitment to energy use and improvement to stakeholders and others • allow certification of the energy management system by an accredited third party • cut energy costs.

First Environmental Management. . .

ISO 14001 EMS Model CONTINUAL IMPROVEMENT Management Review and continual improvement Checking and Corrective Action Measurement and monitoring System evaluation Non-conformance and corrective and preventive action Records Audit Environmental Management Policy Environmental Planning Baseline assessment Regulatory requirements Environmental objectives and targets Environmental management programme Implementation and Operation Responsibilities and competence, Communication Documentation Operational control Emergency preparedness

Energy Management System Model

EMS to En. MS Although energy is included as an aspect in the majority of most organisations’ ISO 14001 management system, no particular emphasis is shown to energy (beyond ‘switch it off campaigns!’) and it is often overlooked with organisations concentrating on the more obvious environmental aspects associated with areas such as waste and chemicals.

Energy Management The starting point is to review the energy usage. . . basically determine the energy baseline.

Energy Planning (Concept Diagram) Planning Inputs Past and present energy uses Relevant variables affecting significant energy use Performance Energy Review A. Analyse energy use and consumption B. Identify areas of significant energy use and consumption C. Identify opportunities for improving energy performance Planning Outputs • Energy Baseline • En. PI(s) • Objectives • Targets • Action Plans

Commonalities of Management System Policies Management System Framework (Manual and Top Level Procedures) Site Specific Operational Controls and Procedures.

ISO 50001 – What is it? • International Standard ISO 50001: 2011 issued 15 June 2011 • Overall aim of the standard is to ‘enable organisations establish the systems and processes necessary to improve energy performance, including energy efficiency, use and consumption’ • Intended to apply to all types and sizes of organisation • Can be used independently or integrated with any other management system • It does not establish absolute requirements for energy performance beyond the commitments in the energy policy of the organisation.

Based on PDCA cycle

ISO 50001 Energy Baseline Identification Model File Energy Usage Review Screen to Determine Significance No Policy Objectives and Targets EMP Operational control System Procedures Audit File

ISO 50001 General Requirements (Clause 4. 1) • Same requirement as ISO 14001 to establish, document, implement and improve a management system in line with the requirements of the relevant standard • However, it goes further by including a requirement for organisations to determine not only HOW it will meet the requirements but also how it will achieve continual improvement of its energy performance AND of its En. MS • ISO 14001 requires an organisation to define and document the scope of the EMS while ISO 50001 requires it to define and document both the scope and boundaries of its En. MS.

ISO 50001 Top Management (Clause 4. 2. 2) ISO 50001 goes into significantly more detail for management responsibility than ISO 14001 and makes the top management role(s) much more clearly defined and accountable.

ISO 50001 Management Representative (Clause 4. 2. 2) • As with top management, the responsibilities of the management representative are given in much more detail in ISO 50001 • Management representative may be current, new or contracted organisation employee • The responsibilities of the management representative may represent all or part of a job function • Skills and competencies can be determined based on the size, complexity, etc. , of an organisation.

ISO 50001 Energy Policy (Clause 4. 3) • Commitments to be included within the policy are to: Continual improvement in energy performance – Ensure the availability of information and of necessary resources to achieve objectives and targets, and – Comply with applicable legal requirements and other requirements to which the organisation subscribes related to its energy use, consumption and efficiency • The energy policy can be combined with another policy • No requirement to make the policy available to the public • Only to be communicated to persons working for the organisation (within training and competency clause, persons working for and on behalf of the organisation need to be aware of the importance of conformity with the policy).

ISO 50001 Energy Planning (Clause 4. 4. 1) • New clause from ISO 14001 requiring an organisation to conduct and document its energy planning process • Energy planning shall involve a review of the organisations activities that can affect energy performance • ISO 50001 does not refer to ‘aspects’ but instead has an energy review to identify areas of significant energy use.

ISO 50001 Legal and Other Requirements (Clause 4. 4. 2) • Predominantly the same requirements as the equivalent clause of ISO 14001 • It does include a requirement to not only identify and have access to applicable legal and other requirements but also to ‘implement’ them • Also an extra requirement in ISO 50001 to review legal and other requirements at ‘defined’ intervals.

ISO 50001 Energy Review (Clause 4. 4. 3) • Closest to clause 4. 3. 1 (Environmental aspects) in ISO 14001 in that it requires an energy review to be developed, recorded and maintained • Current energy sources should be identified and past and present energy use and consumption analysed based on measurement and other data • Areas of significant energy use and consumption should be identified • Opportunities for improving energy performance should be identified, prioritised and recorded • The energy review is to be updated at defined intervals as well as in response to major changes • An energy audit is given within the Annex as an example of a way an organisation carry out part of the energy review.

ISO 50001 Energy Baseline (Clause 4. 4. 4) • New clause not present in ISO 14001 • Organisation is required to establish energy baseline(s) using the information from the initial energy review • Changes in energy performance shall be measured against the energy baseline • The energy baseline(s) shall be maintained and recorded.

ISO 50001 Energy Performance Indicators (Clause 4. 4. 5) • Another new clause from ISO 14001 requiring the organisation to identify energy performance indicators (En. PIs) for monitoring and measuring energy performance • En. PIs can be a simple parameter or a complex model e. g. energy consumption per time, per unit of production or multi-variable models.

ISO 50001 Energy Objectives, Energy Targets and Energy Action Plans (Clause 4. 4. 6) • The requirements of ISO 50001 go further than those of ISO 14001 in that the objectives etc shall not only be established, implemented and maintained at relevant functions and levels but also at relevant processes or facilities within the organisation • Management action plans are required to include: – A statement of the method by which an improvement in energy performance shall be verified and a – Statement of the method of verifying results • Action plans shall be documented and updated at defined intervals.

ISO 50001 Competence, Training and Awareness (Clause 4. 5. 2) • Extra requirements beyond ISO 14001 include ensuring persons working for, or on behalf of, the organisation are aware of: – – • The benefits of improved energy performance The impact of their activities and behaviour to the achievement of the energy objectives These extra requirements link this clause more closely to the improvement requirements of the standards.

ISO 50001 Communication (Clause 4. 5. 3) • Communication internally with regards energy performance and the En. MS • Establish and implement a process by which any person working for, or on behalf of, the organisation can make comments or suggest improvements to the En. MS • Decide whether to communicate externally in relation to – Energy Policy – Energy performance – En. MS.

ISO 50001 Operational Control (Clause 4. 5. 5) • Overall requirements in ISO 50001 are similar to the requirements of Clause 4. 4. 6 of ISO 14001 • No longer a requirement to maintain documented procedures • Procurement is a separate clause in ISO 50001 • No emergency preparedness clause in ISO 50001 (several links within the standard though).

ISO 50001 Design (Clause 4. 5. 6) • New clause in ISO 50001 • To ensure that the organisation considers energy performance improvement opportunities and operational control in the design of new, modified and renovated facilities, equipment and systems and processes that can have a significant impact on energy performance • The requirements of the clause refer to items and activities on the organisation’s site and not the design of products or services it offers to the market place.

ISO 50001 Procurement (Clause 4. 5. 7) • Another new clause in ISO 50001 • Describes the requirements associated with the purchase of energy services, products and equipment • Requirement to inform suppliers that procurement is partly evaluated on the basis of energy performance.

ISO 50001 Monitoring, Measurement and Analysis (Clause 4. 6. 1) • Significantly more detail than the equivalent Clause in ISO 14001 with details of the minimum key characteristics that must be monitored, measured analysed at planned intervals • Define and implement an energy measurement plan • Any significant deviations identified by the energy management plan (e. g. spikes of excessively high energy use) should be investigated.

ISO 50001 Management Review (Clause 4. 7) • Interpretation is the same in ISO 50001 as it is in ISO 14001 • Defined in more detail in relation to inputs and outputs with additional Inputs - Review of energy performance and related En. PIs - Projected energy performance Outputs - Changes in the energy performance - Changes to the En. PIs - Changes to allocation of resources.

The Starting Point • The initial energy review • Determine energy baseline • Set objectives and targets and action plan • Utilise existing management system framework to systematically design / develop, document, deploy, measure and improve • PDCA.

Each Organisation is Unique! • Implementation Guide – Highlights some of the key requirements of ISO 50001 and – Gives suggestions on how these requirements can be met • ISO 50001 Self assessment ‘Health Check’.

Overview of Certification Solution Certification? Assurance Baseline Analysis Phase 1 Initial Energy Review Phase 2 Determine Energy Baseline Phase 3 Set objectives and Targets En. PI’s Timing Phase 4 Design/develop document, deploy, measure, improve

How can LRQA help. . ? • Gap Analysis • Provision of the ISO 50001 health check tool, pathway • Formal certification to ISO 50001 • Training • Facilitation of energy baseline reviews • Technical Helpdesk • Environmental Update Services • Sales and Account management visits to discuss needs and requirements.

Thank you! Any questions?